Bhp Group Ltd · ASX:BHP
Bhp — BHP Billiton — Global Iron Ore & Steel Forecast Conference 2017
16 slides from Bhp's conference presentation, Mar 29, 2017
Slide 1: ASX cover notice: Global Iron Ore and Steel Forecast Conference
For personal use only BHP Billiton Limited BHP Billiton Plc 171 Collins Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1LH UK GPO BOX 86 Tel +44 20 7802 4000 Melbourne Victoria 3001 Australia Fax + 44 20 7802 4111 Tel +61 1300 55 47 57 Fax +61 3 9609 3015 bhpbilliton.com bhpbil
Slide 2: News release: Our culture to drive value and returns at WAIO
NEWS RELEASE Release Time IMMEDIATE For personal use only Date 29 March 2017 Release Number 12/17 OUR CULTURE TO DRIVE VALUE AND RETURNS AT WAIO Speaking at the 20th Annual Global Iron Ore and Steel Forecast Conference, BHP Billiton Western Australia Iron Ore (WAIO) Asset President, Edgar Basto, sai
Slide 3: Media and investor relations contacts
Further information on BHP Billiton can be found at: bhpbilliton.com Media Relations Investor Relations For personal use only Australia and Asia Australia and Asia Paul Hitchins Tara Dines Tel: +61 3 9609 2592 Mobile +61 419 315 001 Tel: +61 3 9609 2222 Mobile: +61 499 249 005 Email: Paul.Hitchins@b
Slide 4: Global Iron Ore & Steel Forecast: Our culture to drive value in the Pilbara
For personal use only Global Iron Ore & Steel Forecast Our culture to drive value in the Pilbara Edgar Basto Asset President Western Australia Iron Ore 29 March 2017 Yandi
Slide 5: Disclaimer
Disclaimer For personal use only Forward-looking statements This presentation contains forward-looking statements, including statements regarding: trends in commodity prices and currency exchange rates; demand for commodities; plans, strategies and objectives of management; closure or divestment of
Slide 6: Key themes
Key themes For personal use only • The health and safety of our people and the communities in which we operate always come first • China and Emerging Asia expected to support steel demand growth • Our tier 1 assets and focus on productivity support strong and sustainable returns • South Flank is our
Slide 7: China and Emerging Asia expected to support steel demand growth
China and Emerging Asia expected to support steel demand growth For personal use only Gap to close in emerging market steel stock Accumulated stock of steel per capita (t) 15 • China’s accumulated steel stock per capita still lags developed economies • Chinese steel demand is expected to grow despit
Slide 8: Seaborne suppliers continue to add low cost, high quality tonnes
Seaborne suppliers continue to add low cost, high quality tonnes For personal use only Differential to Platts 62 Coking Coal Price Major producers continue to add low cost, high quality tonnes (USc/dmtu CFR) (US$/t, FOB) to market, Brazilian competition growing strongly1 (wmt) 20 350 180 10 300 0 25
Slide 9: Strong performance through the cycle
Strong performance through the cycle For personal use only • Record H1 FY17 production of 136 Mt Strong recovery in returns (Return on Net Operating Assets, %) (Average realised FOB Price, US$/wmt) 60 120 • Reduced our unit cost2 to US$15.05/wmt FOB 90 40 60 • We have further opportunities to lower
Slide 10: Three years of continuous improvement has delivered strong results
Three years of continuous improvement has delivered strong results For personal use only • 11% improvement in TRIF • >5,000 improvement initiatives • 26% increase in production • 48% reduction in cost1 Note: H1 FY14 to H1 FY17 comparison. 1. FOB unit cash cost excluding freight and royalties. Edgar
Slide 11: Further strengthening our position
Further strengthening our position For personal use only Improving operations to support further productivity Port Hedland inflow (Annualised Mtpa by month) • Renewal of rail infrastructure will decrease cycle times, 290 six months ahead of schedule 260 • Real time schedule optimisation across the s
Slide 12: New structure unlocks global sharing and learning
New structure unlocks global sharing and learning For personal use only Caterpillar 793F improvement outcomes • 20% engine life improvement • 50% front suspension life improvement • 20% final drive life improvement Example: Maintenance Centre of Excellence • World leading performance • Servicing to
Slide 13: Inclusion and diversity are central to our success
Inclusion and diversity are central to our success For personal use only Why? Safety Culture Productivity • 19% to 68% less injuries • Confident to speak up • Production forecast accuracy is 7% to 15% higher • More likely to follow safe work • Rate BHP Billiton, their job and practices and raise uns
Slide 14: Western Australia Iron Ore contributing to the broader community and economy
Western Australia Iron Ore contributing to the broader community and economy For personal use only Payments to 80% government1 Goods and services TOTAL sourced locally2 $2.5 billion $1.2 600 $255 100,000 billion WA in wages paid to our businesses million retail shareholders in workforce of around We
Slide 15: Key themes
Key themes For personal use only • The health and safety of our people and the communities in which we operate always come first • China and Emerging Asia expected to support steel demand growth • Our tier 1 assets and focus on productivity support strong and sustainable returns • South Flank is our
Slide 16: For personal use only
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